Pension & Benefits NetNews – November 7, 2017

NetNews Subscription

Want to receive these Newsletters via E-mail?

hr.cch.com Resources

About Links in this Newsletter

To access the IntelliConnect™ full text documents you must be a subscriber to the Pension Plan Guide or Employment Benefits Management.

Links within news stories display full text documents including legislation, regulations,
court decisions, rulings and government reports.

The first time you click on a link you will be taken to the IntelliConnect login page, where you will need to enter your ID and password. Subsequent links will take you directly to the desired document.

IntelliConnect

If you aren’t a subscriber call 800-449-9525, or let us contact you about,

Email Us

Contact us by sending an e-mail to

Featured This Week

Employee Benefits Management News

  • Five tips for improving employee benefits programs
  • HHS proposes changes to how small employers and employees enroll in SHOP plans
  • IRS provides extensive new guidance on Qualified Small Employer Health Reimbursement Arrangements
  • House tax bill would eliminate favorable tax treatment for several fringe benefits

Pension Plan Guide News

  • IRS issues 2018 retirement benefit COLAs
  • IRS updates defined benefit mortality table regs
  • IRS issues plan-specific substitute table mortality procedures
  • IRS issues updated static mortality tables for 2018

Employee Benefits Management News

Five tips for improving employee benefits programs

Most employers are either totally frustrated at their employee benefits program or are frozen in place waiting to hear about the next round of Congressional votes, according to Rob Pariseau, executive vice president of Lykes Insurance, a Florida-based commercial insurance firm. “This is actually a good time for employers to take a step back and take a look at their group health plan,” says Pariseau. For more information, see ¶2110U.

        (Read Intelliconnect) »

HHS proposes changes to how small employers and employees enroll in SHOP plans

The Department of Health and Human Services has issued a proposed rule which would reduce the regulatory burdens imposed on the Patient Protection and Affordable Care Act (ACA)-created Small Business Health Options Program (SHOP) exchanges. These proposals, if finalized, could change how small employers and employees enroll in SHOP plans for plan years beginning on or after January 1, 2018. For more information, see ¶2110V.

        (Read Intelliconnect) »

IRS provides extensive new guidance on Qualified Small Employer Health Reimbursement Arrangements

The IRS has issued guidance on the requirements for providing a qualified small employer health reimbursement arrangement (QSEHRA), the tax consequences of the arrangement, and the requirements for providing written notice of the arrangement to eligible employees. For more information see ¶2110X.

        (Read Intelliconnect) »

House tax bill would eliminate favorable tax treatment for several fringe benefits

House Republicans on November 2 unveiled their much-anticipated tax reform legislation, the Tax Cuts and Jobs Act (HR 1). The 429-page bill represents the House Ways and Means Committee’s first legislative offer to significantly overhaul the U.S. Tax Code. The measure contains several benefits-related items. For more information, see ¶2110Y.

        (Read Intelliconnect) »

Pension Plan Guide News

IRS issues 2018 retirement benefit COLAs

The IRS has released the 2018 cost-of-living adjustments to retirement plan limits. Some of the pension plan limitations will not change for 2018 because the increase in the cost-of-living index did not meet the statutory thresholds that trigger their adjustment. However, other limitations will change because the increase in the index did meet the statutory thresholds. For 2018, the elective deferral limit rises to $18,500, up from $18,000. The annual defined contribution limit increases to $55,000, up from $54,000. For more information, see ¶17037w.

        (Read Intelliconnect) »

IRS updates defined benefit mortality table regs

The IRS has issued final regulations prescribing general mortality tables to be used by most defined benefit pension plans that replace the 2008 mortality table regulations. The tables specify the probability of survival year-by-year for an individual based on age, gender, and other factors. This information is used (together with other actuarial assumptions) to calculate the present value of a stream of expected future benefit payments for purposes of determining the minimum funding requirements for a defined benefit plan. These mortality tables are also relevant in determining the minimum required amount of a lump-sum distribution from such a plan. In addition, the final regulations update the requirements that a plan sponsor must meet to obtain IRS approval to use mortality tables specific to the plan for minimum funding purposes (instead of using the generally applicable mortality tables). The method for developing substitute mortality tables set forth in the final regulations is simpler than the graduation method that applies under the 2008 substitute mortality table regulations, and accommodates the use of substitute mortality tables for plans with smaller populations that have only partially credible mortality experience. For more information, see ¶153w.

        (Read Intelliconnect) »

IRS issues plan-specific substitute table mortality procedures

In conjunction with the October 5, 2017 final regulations, the IRS has issued the procedures to be used by defined benefit plan sponsors to request approval from the IRS for the use of plan-specific substitute mortality tables in accordance with Code Sec. 430(h)(3)(C) and IRS Reg. § 1.430(h)(3)-2. These procedures are an update of Rev. Proc. 2008-62. For more information, see ¶17299v56.

        (Read Intelliconnect) »

IRS issues updated static mortality tables for 2018

The IRS has issued updated static mortality tables determined using the methodology in IRS Reg. § 1.430(h)(3)-1 prior to its amendment by the 2017 final regulations. These updated static mortality tables apply for plan years beginning during 2017 with respect to valuation dates occurring during 2018. The updated mortality tables determined under prior regulations apply to certain plans with end-of-year valuation dates, and certain plans for which a transition option under new regulations is used for the 2018 plan year. For more information, see ¶17162j.

        (Read Intelliconnect) »

For more information, visit http://www.wolterskluwerlb.com/rbcs.